It seems like lately I've come across a lot of "first time buyers" and even some "first time sellers" who really didn't seem to know what to expect from working with an agent and just some of the basics of real estate. So it seemed like a good idea to address some of the questions that these folks have come to me with lately.
Why Pick An Agent:
Most buyers whether first timers or not, start their search online looking at listings and photos. Eventually, you'll head outdoors away from the computer and start driving around areas you like, stopping in at open houses or calling the numbers you see on "For Sale" signs. Before you know it, you've talked to half a dozen different agents. What some first time buyers don't realize is that you can simplify your home shopping by picking one agent to work with. Your agent will help do the legwork for you, targeting listings that meet your specific criteria and price range. So instead of having to call a whole lot of different phone numbers, you call your agent who can get information on the homes you think you might be interested in.
Any agent licensed in the area you are looking in has access to the MLS or Multiple Listing Service which includes every home for sale except "For Sale By Owner" properties. The MLS that your agent accesses will be more up to date and include important information such as how long the home has been listed for, any price reductions, etc that just searching online yourself will not turn up. Many times clients will email me a listing they found themselves online only to have me look it up and find that it has already been put under contract.
Your agent will be there to guide you through the entire home buying process. It includes much more than just helping you search for the perfect home. Your agent will help you negotiate a price and can assist you by giving you names of mortgage consultants, local building inspectors, attorneys and other needed professionals. It's not only their job to find you a home, but to help you all the way through to the closing table.
How to Pick an Agent:
Of course if you know someone who had a positive experience and they refer you to the agent that they used, that's great. But even if you have a referral from a friend or family member it still may be worth your while to talk to a few agents and see who you "gel" with. After all, you have to feel comfortable with this person because you'll be spending a lot of time with them! And don't necessarily discount newer agents. They are usually eager to please and have plenty of time to devote to YOU. Just make sure they have a good support system (a mentor, lots of contact with their broker, supportive office staff, etc) and seem organized and knowledgable.
Whoever you pick should respond to phone calls and emails quickly. If they can't answer a question for you, they should get back to you with an answer pronto! And they shouldn't be afraid to say "I'm not sure. Let me find out for you." as long as that isn't their standard answer for every question!
They should be asking YOU lots of questions especially in the beginning. They need to learn from you as much as possible about what you want in a house. Aside from the standard, "what's your price range? how many bedrooms/bathrooms do you need?", they should be asking you a laundry list of questions about what you like and want to help you target your search. And when you go out looking with your agent, they should be tuned in to your reactions and asking you what you like and don't like about each property. They need to know these things to help refine the search so you aren't wasting your time!
Agency Relationships:
Here in South Carolina, any agent needs to disclose "agency relationships" to you fairly early on. "Agency" describes the kind of relationship you will have with your agent. Generally speaking, if you sign an agreement with your agent (as most will want you to do), they work for you and are supposed to put your interests above all others including their own. Information between you and them is privileged and cannot be disclosed to other parties. They can then help you negotiate the best deal and assist you at every level. You are their "client". If you choose not to sign, you are considered a "customer". They must be honest with you about properties they show you, but technically they are working for the seller so be aware of what you say if you decide to "represent" yourself.
Keep in mind too, that by signing an agency agreement you are also agreeing to work solely with this particular agent. Just as you expect your agent to be loyal to you, the client; you are expected to reciprocate and not go agent hopping. This is why you should talk with a few agents first before signing on with the one you are most comfortable with. This doesn't mean you can't stop in to an open house if you want, but be sure to let the agent on duty know you are already represented. They will most likely ask you anyway.
This is a very abbreviated explanation about agency here. I promise to blog in more detail about it at a later date. Just know that whatever agent you work with should give you a pamphlet that you can read (it's state mandated here in SC that we provide you with this!) with detailed information about it. They should also give you a full explanation and allow you to ask questions and provide meaningful answers. Basically, agency was created to protect consumers, but as with any signed agreement you enter into, you want to understand what it all means for you!
In most cases, signing on with an agent does not mean that you are responsible for paying that agent for their work. Typically, the agent's fees come from the seller's proceeds of the home. However, if you decide to go look at For Sale By Owner properties with your agent, you will need to discuss how the agent plans on getting compensated. Sometimes the seller will still pay the agent for bringing a buyer, but sometimes the agent will expect the buyer to provide compensation in this case. Be sure to discuss this ahead of time with your agent if FSBO's appeal to you.
You're Fired!
Finally, just know that if you are not happy with your agent you are not necessarily stuck with them! If you signed an agency agreement you can usually request (in writing) to be released. Send a copy of your request to the agent and the agent's broker. Some agreements might specifically spell out the terms for being released from the agreement so read carefully before signing and if there is not any language regarding this, ask your agent what their personal policy is. But basically, if you can hire them, you should be allowed to fire them!
Most agents are good, ethical people that just want to help you out. Working with one can help simplify what is sometimes a complicated process. There are often little glitches that come up along the way and your agent is your "go-to" person! Buying a home is often the biggest financial and emotional investment that you'll ever make. So who wouldn't want a little help with that?
Additional Information
You can find additional information on home buying on this blog or at my website www.summervillerealestateonline.com As always, I am also available to answer questions with no obligation. Feel free to email me at Maria@OTRHomes.com or call me at 843.860.3901 if I can be of assistance.